A consumer insurance information blog by Renaissance Alliance, a consortium of New England independent insurance agents, focusing on news, information and tips to take the mystery out of insurance.

A consumer insurance information blog by Renaissance Alliance

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Most Americans flunk when it comes to basic insurance knowledge, according to a recent survey conducted for the National Association of Insurance Commissioners (NAIC). Despite this, about 56% of the survey respondents felt “very confident” about making insurance decisions. In a 10-question insurance quiz, the average score was a dismal 40%.
But wait – before you learn more about the results of the survey, why not take the insurance IQ Test yourself and see how you fare?
Having a basic knowledge of insurance can mean the difference between overpaying for coverage and saving money. Misconceptions can also mean that a buyer doesn’t secure adequate coverage to protect them in the event of a loss. For example, only 4 in 10 respondents knew that auto insurance doesn’t automatically cover a rental car and only 14% were aware of the amount of life insurance that is typically recommended.
Given the test results, it is fortunate to learn that 61% of the respondents said that they use an insurance agency when purchasing insurance outside of employment. And we were happy to hear that 80% of the respondents said they had a good relationship with their agent and that 82% trust their agent to help them make the right choices.
Survey results: Executive Summary (PDF)

One thought on “Survey: Americans flunking insurance”

Not surprised to hear these results. After all, who wants to be an insurance expert?
As agents, we try to uncover the main concerns of customers and build an insurance program around that. Average people don’t want to think about when things go wrong; that’s what we do.
Knowing the customer is more important in the insurance business than most any other; finding the most economical solutions means knowing the customer, knowing markets, and finding the best fit. Plain vanilla solutions work for some of the people some of the time… but beware shortcuts all of the time!

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